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IAC (IAC)·Q4 2025 Earnings Summary

IAC Q4 2025: Digital Revival Drives EBITDA Beat as Search Collapses

February 3, 2026 · by Fintool AI Agent

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IAC delivered a mixed Q4 2025 with Adjusted EBITDA up 29% to $141.6M, driven by People Inc.'s digital transformation, while total revenue declined 10% to $646M due to Search business deterioration and the Angi spin-off . The company beat consensus revenue by 0.8% ($646M vs $641M expected) and Adjusted EBITDA by 3.0% ($141.6M vs $137.5M expected).

"The fourth quarter capped a year of disciplined execution and solid performance across IAC. People Inc. drove the fastest digital revenue growth we've seen in over a year, even amidst AI-driven disruption," said Chairman Barry Diller .

Did IAC Beat Earnings?

MetricQ4 2025 ActualConsensusSurprise
Revenue$646.0M$641.0M+0.8%
Adjusted EBITDA$141.6M$137.5M+3.0%
GAAP EPS($0.99)N/ALoss narrowed 59% YoY

IAC beat on both revenue and EBITDA, though the GAAP loss was driven by a $207.5M non-cash goodwill impairment at Care.com . The company repurchased 10% of its shares outstanding since the beginning of 2025, totaling $337M in buybacks .

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What's Driving Digital Revenue Growth?

People Inc.'s Digital revenue surged 14% to $355M — the highest quarterly growth rate in five quarters — despite a 13% decline in Core Sessions due to Google AI Overviews .

Segment Breakdown

Digital Revenue Breakdown

Revenue StreamQ4 2025Q4 2024YoY Growth
Advertising$209.9M$191.8M+9%
Performance Marketing$101.2M$86.5M+17%
Licensing & Other$43.8M$32.3M+36%
Total Digital$354.8M$310.6M+14%

Key drivers:

  • Premium advertising growth in Health, Finance, and Media categories
  • Affiliate commerce up 21% on higher transaction volumes
  • New Meta AI partnership signed in December 2025 as first lifestyle publisher
  • Apple News+ and content syndication partnerships expanding

What Happened to the Search Business?

The Search segment collapsed 68% to $29M, with Ask Media Group down 71% and Desktop down 51% . Management cited "frequent Google algorithm changes and policy updates" that reduced traffic through affiliate channels .

SegmentQ4 2025Q4 2024YoY Change
Ask Media Group$21.6M$74.0M-71%
Desktop$7.4M$15.2M-51%
Total Search$29.0M$89.2M-68%

The Google service agreement expires March 31, 2026, and management flagged "uncertain future given the disruptions in the search ecosystem and potential Google contract changes" .

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What Did Management Guide?

IAC provided FY 2026 Adjusted EBITDA guidance of $260-335M, notably abandoning quarterly guidance due to "heightened market volatility and macroeconomic uncertainty" .

SegmentFY 2026 Adj. EBITDA Guidance
People Inc.$310-340M
Care.com$45-55M
Search$(5)-10M
Emerging & Other$0-10M
Corporate$(90)-(80)M
Total$260-335M

Key guidance observations:

  • People Inc. Digital revenue and EBITDA expected to grow mid-to-high single-digits in 2026
  • Corporate expenses to exceed Print Adjusted EBITDA by $15M due to Google litigation costs
  • Care.com expected to return to revenue growth in 2026

What Changed From Last Quarter?

Positive Developments:

  1. Digital momentum accelerating: 14% growth vs 10% in Q3 2025
  2. AI partnerships expanding: Meta partnership signed, adding to existing OpenAI and Microsoft deals
  3. Share count reduction: 10% of shares repurchased since January 2025
  4. MGM stake increased: Purchased additional 1M shares for $40M

Concerns:

  1. Care.com impairment: $207.5M goodwill writedown signals deteriorating value
  2. Search freefall: 68% revenue decline with uncertain future
  3. Print decline: 23% revenue drop as advertising migrates to digital
  4. Core Sessions down 13%: Google AI Overviews impacting 70% of top People Inc. queries

How Did the Stock React?

IAC shares closed at $36.80, down 0.6% on earnings day, relatively muted given the mixed results. The stock is down 12% from its 52-week high of $41.86.*

MetricValue
Earnings Day Close$36.80
Change-0.6%
52-Week High$41.86
52-Week Low$29.56
Market Cap$2.95B

*Values retrieved from S&P Global

Capital Allocation: Aggressive Buybacks Continue

IAC has been aggressively returning capital, repurchasing 10% of shares outstanding ($337M) since the beginning of 2025 .

Capital DeploymentAmount
Share Buybacks (2025)$337M
MGM Stake Purchase (Q4)$40M
Shares Outstanding77.3M
Remaining Buyback Authorization5.5M shares

MGM Position: IAC holds 65.8M shares of MGM, purchased for $1.3B and valued at $2.2B as of February 2, 2026 .

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Liquidity Position

Balance Sheet ItemDecember 31, 2025
Cash & Equivalents$960.2M
IAC Cash$675.9M
People Inc. Cash$284.3M
Long-Term Debt$1.4B
MGM Stake Value$2.2B

People Inc.'s net consolidated leverage ratio remained below 4.0x, providing flexibility for continued investment .

Forward Catalysts

Near-term:

  • Q1 2026 earnings (May 2026)
  • Care.com revenue growth trajectory validation
  • Google service agreement renewal/renegotiation (expires March 31, 2026)

Medium-term:

  • AI partnership monetization (Meta, OpenAI, Microsoft)
  • Digital revenue mix shift (Print → Digital)
  • Continued share repurchases

MGM-related:

  • MGM international expansion (Japan, Dubai)
  • BetMGM monetization trajectory
  • Potential MGM capital return actions

Key Q&A Highlights

Earnings call scheduled for February 4, 2026 at 8:30 AM ET

Topics to watch for in the call:

  • AI Overview impact mitigation strategies
  • Care.com turnaround timeline
  • Search segment strategic options
  • MGM holding period and exit strategy

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